Business Ethics Corporate Governance

Topics: Ethics, Business ethics, Corporate social responsibility Pages: 137 (5886 words) Published: November 20, 2014
BUSINESS ETHICS
&
CORPORATE GOVERNANCE

OCS

AGENDA
• Understanding Ethics
• Managing Business Ethics
• Corporate Social Responsibility
• Complexity of Ethical Issues
• Ethical Leadership
• Evaluation of Corporate Governance
• Internal & External Corporate Governance mechanisms
• Corporate Governance Ratings
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Scams

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Values
• Fundamental beliefs
• Principles for good, right and just
• Evaluate something vis-à-vis a
Standard
• Integrity, Patriotism, Fairness

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Morals
• Values attributing to a system of
beliefs
• Values derived from a higher
authority
• Religious system or political system

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Understanding Ethics
• Greek word “ethos” meaning
character
• Right and wrong conduct
• Studies moral behavior and how one
should act
• a set of concepts and principles that
guide us in determining what
behavior helps or harms others
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Business Ethics
• Study and examination of moral and 
social 
responsibility in relation to 
- business practices 
- decision-making in business

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Ethical Business Practices (1
of 2)

• Investors:


Ensuring safety of their money and timely
payment of interest.

• Employees:


Provision of fair opportunities in promotions and
training, good working environment and timely
payment of salaries.

• Customer:




Complete information of the service and product
should be made available.
Personal information of
OCSthe customers should not

Ethical Business Practices (2
of 2)

• Competition:


Unscrupulous tactics, competitor bashing and
wrong methods should be avoided while handling
competitors.

• Government:


Rules and regulations regarding taxes, duties,
restrictive and monopolistic trade practices and
unlawful activities like corruption and bribing
should be adhered to.

• Environment:


Polluting industries should
ensure compliance
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Ethical Absolutism
• Certain actions are absolutely right
or wrong
• Consequences or intentions are
irrelevant
• Eg. Stealing
• A principle which never ought to be
violated

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Ethical Relativism
• Differences in judgments across
different people & cultures




Meta-ethics
Normative ethics
Applied ethics

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Three major areas in Ethics
1) Meta-ethics
when people disagree, nobody is objectively right
or wrong
Eg. "How can we tell what is good from what is
bad?“
2)

Normative ethics
practical means of determining a moral course of
action –
nobody is right or wrong; need to tolerate others
Eg. "What should one do?"
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Normative Ethics


Teleological Ethics



Deontological Ethics

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Teleological Ethics or
Consequentialism
• Ends or consequences of an act determine
whether an act is good or evil
• A morally right act (or omission) is one that
will produce a good consequence
• Whatever comes of our actions determines
whether it was good or bad
• Eg. Boss’s red tie does not suit him

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Deontological ethics or
Non-Consequentialism
• Kantian Right  
• Judges the morality of an action based
on the action's adherence to rules 
• “Rules bind you to your duty“
• Categorical Imperative – true in all
circumstances



Rules must be universal
Rules must respect humans

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Positive & Negative Rights





Positive rights are given to you
Oblige action
Eg. Food, Public education
Negative rights that you have, that
cannot be taken away
• Oblige inaction
• Eg. Freedom of Speech, Fair trial
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Ethics of Justice
• Chooses solution that seems to
damage the least number of people
• Distributive Justice
• Retributive Justice
• Compensatory Justice

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Distributive Justice
• Perceived fairness of how rewards are
distributed across group members
• Types of Distributive Norms






Equity
Equality
Power
Need
Responsibility
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Retributive Justice
• Two distinct types



Amount of punishment...
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